Aw, suki suki now! Those Netflix instant streaming discs that started floating out to anxious PS3 owners yesterday are obviously splashing down, with YouTube user (and avid Engadget reader) otimus posting up a stellar walkthrough showing everything in action. We've got to admit -- the whole thing looks exceptionally sleek, but given the PS3's multimedia prowess, we didn't really expect anything less. He stated that he didn't notice any stuttering as he sifted through films and mashed play, and that any jitters you see in the video (after the break) can be blamed on the janky TV capture device. So, any others receive their disc today? How's the experience?

[Thanks, Otis]

Update: Our best buds over at Joystiq got some quality hands-on time with this (video is now after the break), so be sure and check it out!

It can't all be sweet, right? So Netflix is indeed coming to PlayStation 3, but there's a catch, and that is a disc (badly photoshopped into the picture above) will be required for use -- not just for a one-time install, but every time you want to stream. Joystiq shot some questions off to the company, who justified this as being "fastest and easiest way to let PS3 enthusiasts get Netflix on the PS3" and that an embedded software solution through XMB will be coming late next year. It denies this has anything to do with Microsoft's exclusivity agreement, but frankly we're a bit bummed by this perplexing hurdle in convenience. At any rate, be sure to go reserve your disc now if you want to start streaming -- assuming, of course, PlayOn hasn't already satisfied your Netflix needs.

Read - Netflix interview
Read - Disc reservation page (must be logged in to see)

What a coup. After we've been hearing all along that Xbox 360 had a game console exclusivity to Netflix streaming, Sony just announced it, too, will be joining in on the fun. Timeframe? Sometime next month. Press release after the break.

[Via PlayStation blog]

As usual, this week's Ask Engadget HD centers around a particular home theater setup question, as Philip is trying to set things up for one particular purpose: gaming. Movies and TV are great source of high definition, but some of us just want to hook up the Xbox 360 or Playstation 3 and go. We'll let him flesh out the details:

"I'm finally ready to build the home theater I've always wanted, and while I'll definitely be watching TV and playing Blu-ray discs as well, it's going to be all about gaming. I've already got a PS3 and Xbox 360 hooked up to an old 20-inch LCD, but I need a real HDTV and surround setup now. I know some games support 7.1, is it worth the extra setup? Also, what HDTV in the $1,000 - $2,000 price range is best for games?"

While 7.1 may not be the immediate move for everyone, we're sure some Killzone 2 players may appreciate the extra speakers. Let Phil know what setup you're running, and if you want to throw in a Xbox Live Gamertag or PSN ID as well we certainly won't be mad at you. [Note: This isn't about which system is the best, we've been there and while we might revisit the question later, fanboys, this is about the surrounding equipment so try and stay on topic, k?

Got a burning question that you'd love to toss out for Engadget HD (or its readers) to take a look at? Tired of Google's blank stares when you ask for real-world experiences? Hit us up at ask at engadgethd dawt com and keep an eye on this space -- your inquiry could be next.

As it turns out, yesterday's report was spot-on. Sony today announced that it is bringing the experience of looking absolutely ridiculous in 3D glasses home to the living room. The initiative is "starting in 2010" and will expand through BRAVIA LCD HDTVs, VAIO machines, PlayStation 3, and Blu-ray discs... and not in the press release, but we clearly see a CyberShot digital camera in the promotional video (look out, Fujifilm). It's hard to say from the wording if all the listed product lines will go 3D next year, but from what we gather there'll at least be BRAVIA sets in time for that Christmas. Curious see the zaniest video this side of the second dimension? Well, we don't have that, but you can giggle your way through Sony's promo after the break.

Sony may be working to expand the perception of the PS3 as a media powerhouse with half-hearted bundles and new advertising campaigns, but according to SCEA Director of PlayStation Network Operations Eric Lempel, it's already doing quite well in that department. He indicates that 74 percent of all PS3 users have "spent some time" watching Blu-ray movies, with barely a quarter left shunning the machine's high-def creds. Of course, the real question for Sony's sake is how many have gone ahead and purchased some of those fancy discs, a stat that Lempel doesn't share, but regardless we have to think it's time for Sony to stop putting tedious advertisements for Blu-ray players at the beginning of its Blu-ray discs -- we've already got one, you see? It's very nice!

[Via Joystiq]

The Financial Times has it on good word what the major unveil in Sony chief Sir Howard Stringer's keynote tomorrow at IFA 2009 will, so much so that it's quoting him with phrases he hasn't even said yet. According to the report, the company is making a huge push into the third dimension, with 3D BRAVIA HDTVs hitting the retail channels by the end of 2010. Also on the menu is 3D-compatible PlayStation 3 titles (which we've kind of heard before), VAIO laptops, and Blu-ray movies, but it's unclear from the article if they shares the same 2010 timeline. Polarized glasses will be required for use, but hey, just consider it a fashion statement. We're now very anxious to see how close Sir Stringer sticks to this purported script for tomorrow's big event.

Finally, it's official and in our hands for a review. Now you decide, with the addition of HDMI-CEC, bitstreaming for the latest codecs, and in a quieter smaller case (although it might be a little slower loading, for now) the PlayStation 3 Slim is better and cheaper than ever for your home theater. So let us know, is that enough to get you to purchase one?

Slowly, ever so slowly we're beginning to learn about the internal differences between Sony's new PS3 Slim and its chubby ancestry. We already knew that it supported BraviaLink while talk of "faster gaming" was introduced (suspiciously) yesterday; something that remains very much in doubt until we can confirm. Now we hear that the fatboy gone slim supports Dolby TrueHD and DTS-HD Master Audio bitstream output to your receiver. Hear that audio nerds? Bitstream. See the HDMI chip on previous generations of the PS3 didn't support bitstream output of the new(ish) high def codecs like Dolby TrueHD and DTS-HD MA. As such, the PS3 had to decode it internally before sending it over to your receiver via LPCM. A process that could garble the lossless audio depending on your setup. Even though the vast majority of people will never notice the difference (or even care), PS3 Slim owners can still kick back in smug satisfaction each time the TrueHD or DTS-HD MA indicators light-up on their receivers.

It's been nearly two years since Halo 3 and Call of Duty 4: Modern Warfare were released and disappointed the "HD era" by not quite making it up to 720 lines of resolution. Two years later, it appears their sequels due this fall, Halo 3: ODST and Call of Duty: Modern Warfare 2, won't be able to do any better. In separate articles, developers confirmed both will match the resolution of the original games (1024x600 for Call of Duty, 1152x640 for Halo.) Honestly, we have the same perspective we did then, there's a lot more to image quality than just resolution and a peek at a trailer for either game will reveal plenty of visual tricks to keep the eyes entertained (if you think a measly 120p's will pull Editor Emeritus Ryan Block away from CoD, think again) but, c'mon guys, the so-called HD era is four years deep, if Bizarre could figure out how to squeeze 720p res and better graphics while moving from Project Gotham Racing 3 to PGR4, why can't you?

[Via Evil Avatar & again]

Read - Halo 3: ODST not 720p admits Bungie
Read - Modern Warfare 2 will render at 600p

If you have the dominant high-def optical storage format -- which can serve both movies and games with equal aplomb -- built right into your consoles, shouldn't you be leveraging that synergy? Well, the assimilation is now complete, as Watchmen Director's Cut launched today with The End is Night Parts 1 and 2 for PlayStation 3 in tow. The price of admission here is a penny under $50 before tax / shipping -- and considering both parts of the game cost $30 total on their lonesome, that's none too shabby of a deal. It'll be interesting to see what film and tie-in game make the merge next -- anyone up for a Charlie and the Chocolate Factory re-release?

After weeks of silence, Hulu has provided some commentary on its blocking of PlayStation 3 and Windows Mobile browsers (unless you work out a way around it, of course), sending a form email back to any members the requested support for the issue that was heavy on "context" and light on answers. Without acknowledging that the company even is blocking these devices, the dispatch mentions "maximizing the content you can access as conveniently as possible in a way that "works" for the content owner." Of course that doesn't provide us any details as to which content provider(s) terms necessitated the change, or if, and in what form, we can expect easy off-PC access to Hulu's video streams to return but if you feel like navigating the fluff yourself, the letter is after the break.

[Thanks, Connor]

A few days after blocking PlayStation 3 users, Hulu has yet to respond to questions concerning the change which has only helped to fuel rumors it is related to the Microsoft ad campaign currently featured on the site, but that seems less likely now that we've confirmed it also began blocking the Flash-enabled Skyfire browser on Windows Mobile devices at the same time. Whatever the cause is, if you prefer a homegrown hack over something like PlayOn or TVersity, Eric over at ypass.net has put together a simple enough walkthrough for creating an "unblockable" workaround by setting up a locally connected PC running Linux or Windows with the freely available Squid proxy server software that will make your PS3 look like appear as a PC running a Firefox (or whatever you prefer) browser to any website that asks. Of course, just like the other solutions your computer will need to stay running to keep you connected, but we figure it's a small price to pay for enjoying relatively low res Flash video running on an HDTV.

Read - Got a PS3? Want Hulu Back? Easy enough...
Read - Squid-setup for Windows NT /2k /X